Italy Plans to Reduce Tax Increase on Cryptocurrency Capital Gains

Tax Increase Trimmed

Italian lawmakers are revising the proposed tax hike on crypto capital gains, intending to lower it significantly during the legislative process. The initial plan aimed to raise the tax rate from 26% to 42% by the end of December.

Reason for the Decision

The government’s decision to adjust the capital gains tax on cryptocurrency was driven by the increasing popularity of digital asset investments, primarily in bitcoin, which recently surpassed $100,000 in value. Deputy Finance Minister Maurizio Leo highlighted the widespread adoption of cryptocurrencies, prompting the need for tax policy changes.

Official Statements

Lawmakers Giulio Centemero and Federico Freni, along with a junior minister at the Treasury, acknowledged the forthcoming revision in a statement to Reuters. They emphasized the necessity of adapting tax regulations to the evolving landscape of digital investments.

Industry Response

CoinDesk attempted to reach out to Centemero and Freni for further insights on the revised tax proposal. The cryptocurrency community awaits the final decision on the adjusted tax rate and its implications for investors.